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TMI Blog2019 (6) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... ny through CASS - HELD THAT:- The time limit for furnishing the return of income as per Section 139(5) of the Act for the Assessment Year 2011-12 was one year from the end of the assessment year or the date of completion of the assessment, whichever occurs earlier. So as on 31.3.2013 one year from the end of Assessment Year 2011-12 did not expired and assessment u/s 143(3) of the Act was still in the process of completion. Therefore the assessee was legally entitled to file the revised return of income. The assessment proceedings u/s 143(3) were completed on 31.12.2013 and the Ld. A.O has duly considered the revised return. In these given facts and circumstances of the case holding the assessee liable for paying penalty u/s 271(1)(c) on the income duly disclosed in the revised return of income before the completion of the assessment proceedings, is not justified and the same deserves to be deleted. - Decided in favour of assessee. - ITA No.535/Ind/2018 - - - Dated:- 14-6-2019 - Hon'ble Kul Bharat, Judicial Member And Hon'ble Manish Borad, Accountant Member For the Assessee : Miss Nisha Lahoti ,CA For the Revenue : Shri B.J. Bor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l return of income. By issuing notice u/s 274 of the Act and after considering the submissions made by the assessee, levied penalty of ₹ 1,66,500/- for furnishing inaccurate particulars and concealment of income. The instant appeal relates to the penalty levied u/s 271(1)(c) of the Act and against the order of Ld. A.O levying the penalty, assessee went in appeal before the Ld. CIT(A) but failed to get any relief. 4. Aggrieved assessee is now in appeal before the Tribunal challenging the legality of the penalty proceedings as well as raising grounds on merits against the penalty levied u/s 271(1)(c) of the Act. 5. Ld. Counsel for the assessee submitted that as per provisions of Section 271(1)(c) of the Act the penalty can be initiated either for concealing the particulars of income or for furnishing inaccurate particulars of income, whereas the Ld.A.O has not recorded specific charge on the assessee, as to whether penalty is to be levied for furnishing inaccurate particulars of income or concealing the particulars of income . Placing reliance on the judgment of Hon'ble Jurisdictional High Court in the case of PCIT Vs Kulwant Singh Bhatia ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of income which you were required to furnish by a notice given under section 22(1 )/22(2)/34 of the Indian Income- Tax Act, 1922, or which you were required to furnish under section 139(1) or by a notice given under section 139(2)/148 of the Income-Tax Act, 1961, No , Dated , or have without reasonable cause failed to furnish it within the time allowed and in the manner required by the said section 139(1) or by such notice. X *have without reasonable cause failed to comply with a notice under section 22(4)/23(2) of the India Income-Tax Act, 1922, or under section 142(1)/143(2) of the Income-Tax Act, 1961 No , Dated 06/12/2006 (order sheet entry). \I '*have concealed the particulars of your income or .......... , furnished inaccurate particulars of such income. You are hereby requested to appear before me at 11.00 A. M. on 16.01.2014 and show cause why an order imposing a penalty on you should not be made under section 271 of the Income-Tax Act, 1961. If you do not wish to avail yourself of this opportunity of being heard in person or through authorized representative you may show cause in writing on or before the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c) of the Act which is placed at Page-52 of the Paper book and the relevant extract is reproduced below: To Shri Varad Mehta 239, Sunny Palace M P Nagar Zone-1, Bhopal Sir / Madam, Sub:- Penalty proceeding u/s .. 271( 1 ) ( c) .. of the Income Tax Act 1961 for the AY 2008.09 In connection with the penalty proceedings u/s, 271(1) (c) for the assessment year(s) 2008-09 you are requested to attend my office on 18.01. 2010 at 11.00 AM to show cause why penalty should not be imposed. However. if you do not wish to be heard in person in this regard, you may submit your written submissions so as to reach me by the above date which will be considered before disposal of the matter. Sd/- ( Shrlkant Namdeo ) Deputy GommissfsonerOf1ncome Tax-1(1}, Bhopal Bhopal 13. From perusal of the above show cause notice we find that the Ld.A.O has merely mentioned the section but the specific charge i.e. whether the penalty have been initiated for concealment of particulars of income or for furnishing inaccurate particulars of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the quasicriminal proceedings u/s 271(1)(c) of the Act ought to comply with the principles of natural justice. 14. We therefore respectfully following above referred judgments and in the given facts and circumstances of the case are of the considered view that the alleged notice issued u/s 274 r.w.s. 271(1)(c) of the Act dated 31.12.10 is invalid, untenable and suffers from the infirmity of non application of mind by the Assessing Officer. We accordingly direct to delete the penalty of ₹ 16,00,000/- imposed u/s 271(1)(c) on this ground itself. We accordingly allow the additional ground raised by the assessee on the legality of the penalty proceedings initiated u/s 271(1)(c) of the Act. Since the penalty u/s 271(1)(c) also has been dealt on the preliminary points other arguments of the assessee dealing with the merits of the levy of penalty are not been dealt with, as the same are rendered academic in nature and the appeal of the assessee for the Assessment Year 2008-09 is allowed . 11. We therefore respectfully following above referred judgments and in the given facts and circumstances of the case are of the considered view that the allege ..... X X X X Extracts X X X X X X X X Extracts X X X X
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